ASX 200 closed up 27 points to 7338 (+0.4%) after a day of fluctuating around the flat line. Aussie banks unscathed from souring bank sentiment following Moody’s downgrades of US banks last night, after the CBA profit machine posted stellar results, up 2.6%. Banks rallied in unison, NAB +2.2%, WBC +1.7%, and ANZ +0.8%. Big Bank basket up to $180.99 (2.1%). Tech doing ok. NXT up 2.4%, and WBT finding some support up 3.6%. All Tech Index up 0.9%. Healthcare stocks going nowhere, RMD sold off, down 4.6%, and CSL down 0.9%. Consumer staples flat. Resources and mining were marginally higher, BHP up 0.4%, FMG gained 0.2%, but RIO lost 0.5%. Lithium stocks lower, AKE down 0.8%, LKE off 5.7% and INR off 5.5%. Gold miners sitting pretty, EVN up 1.6%, PRU +1.5%. REITs worse despite bond yields falling. GMG -0.2% and SGP off 1.2%. Industrials were mixed, JHX fell 0.1%, and COL down 0.1%, but NWS managed to climb 1.1%. In corporate news, SUN fell 1.5%, on a soft dividend announcement. WGX up 2.4% on board approval for the Great Fingall Mine. PNR crashed 21.4% on operation updated. IVC +5.9% approved takeover offer from TPG Capital, and SYR +1.6% in talks to establish an off-take agreement for up to 10ktpa of graphite active anode. In economics, China’s CPI fell 0.3% YoY in July, the first fall since Feb-21, compared to a flat reading in June. China’s PPI figure fell more than expected, down 4.4% YoY in July, worse than the 4.1% decline consensus after a 5.4% drop in the prior month. Asian markets lower after data showed China slipped into deflation in July, a negative sign for global growth outlook. Japan down 0.4%, Hang Seng down 0.2%, and China’s blue-chip stocks eased, pushing China lower -0.5%. Australian bond yields stable, 2Y yield wasunchanged 10Y yield slipped 2bps. Aussie dollar fell below $0.657 today for the first time in more than two months before closing up 0.2%. Dow Jones futures up 4 points and Nasdaq futures up 31 points.

HIGHLIGHTS

  • Winners: ADT, FCL, IVC, CRN, MYR, NAN, WBT
  • Losers: KGN, INR, AZS, RMD, ASB, LOV, SGR
  • Positive sectors: Banks. Tech. Old Skool platforms. Gold miners.
  • Negative sectors: REITs. Insurers. Healthcare.
  • High 7342 Low 7308 Same range as yesterday.
  • Big Bank Basket: CBA results turbo charge banks up to $180.99(2.1%)
  • All-Tech index: Up 0.9%
  • Gold weaker at $2945
  • Bitcoin: Better at US29746
  • Aussie Dollar:  Steady at 65.56c
  • 10-Year Yield: Back to 3.98%
  • Asian markets: Japan down 0.4% HK down 0.1%, China down 0.2
  • US Futures: Dow up 2 Nasdaq up 33.
  • European markets looking at a firmer opening.

MAJOR MOVERS

  • ADT +10.6% placement.
  • IVC +5.9% Harry Kane slots home another one.
  • CRN +4.8% broker updates.
  • MYR +4.1% finding a bottom.
  • AW1 +20.3% big volume day. HC must be busy.
  • NXS +8.3% potential anti-inflammatory benefit.
  • SYR +1.6% in talks with Samsung SDI.
  • BPT -0.3% CEO quits suddenly.
  • CHN -2.1% media reports that some interested parties have pulled out.
  • DLI -12.7% Diggers presentation.
  • INR -5.5% National Parks in US?
  • LOV -4.3% Macquarie downgrades. Late.
  • RMD -4.6% slipping away again.
  • PNR -21.4% presentation.
  • AGY -5.1% tired lithium stocks suffering.
  • AZS -4.9% Diggers and Dealers strikes again.
  • Speculative Stock of the Day: Iris Metals (IR1) +43.9%. Appetite for lithium hits remains strong. Multiple high-grade hits at Beecher.  Good volume too.

HEADLINES

  • China’s consumer price index has fallen 0.3% year on year. Producer prices fell for a 10th consecutive month, contracting 4.4% in July from a year earlier, slightly worse than expected.
  • South Korean stocks that had skyrocketed on perceived links to superconductors, fell for a second day Wednesday.
  • Amazon is in talks to join other tech companies as an anchor investor in Arm Ltd IPO. Arm is owned by Softbank and could be the biggest tech IPO of the year.
  • Meta disbands protein-folding team in shift towards commercial AI.
  • Loan losses at US banks hit $19bn as borrowers feel rate rise pain.
  • Investors’ expectations of eurozone inflation hit 13-year high.
  • WeWork raised serious concerns it could go out of business. Bleeding cash, and customers are cancelling their memberships.
  • Trump admits criminal charges will damage 2024 presidential campaign.
  • Total US credit card indebtedness increased by $45bn in the April-through-June period, a rise of more than 4% and just above $1 trillion.
  • European markets opening around 0.8% higher after Italy caps windfall tax.

COMPANY ANNOUNCEMENTS

And finally….

Blessed are those who can  give without remembering
and take without forgetting.

I was always taught to respect my elders,
but it keeps getting harder to find one.

Clarence

XXXXX